The IG Corporate WTD total is 81.98% of this week’s syndicate midpoint average forecast or $23.15b vs. $28.24b.

MTD we’ve priced 64.06% of the syndicate forecast for January IG Corporate new issuance or $82.825b vs. $129.29b.

There are now 10 issuers in the IG credit pipeline.

Today’s IG Primary & Secondary Market Talking Points

Mischler Financial served as a Junior Co-Manager on today’s Citigroup Inc.$1b 21nc20 Senior Unsecured Notes tranche. Thanks and appreciation to Citi Team Treasury/Funding and Syndicate for working with me today. Today’s 21nc20 tranche finished with a $1.9b book for a 1.90x bid-to-cover rate.

Mischler Financial also served as a Junior Co-Manager on today’s Deutsche Bank AG/New York Branch$2.15b two-part 3-year Fixed and FRN Senior Notes new issue. Thank you to Team DB Treasury/Funding and Syndicate for their patronage. Today’s DB 2-part finished with a cumulative 3.375b order book total for an overall oversubscription rate of 1.57x. The book splits were as follows – FRN: $875mm or 1.35x and the Fixed tranche was $2.5b (1.67x). NIC was about one nickel or 5 bps on both.

TPG Specialty Lending Inc. upsized today’s 5-year Senior Notes new issue to $150mm from $100mm at the launch and after skipping guidance.

The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 13 IG Corporate-only new issues was <15.52> bps.

The “BBB” (+121) asset class set new post-Crisis low.

The IG Average (+94), “AA” (+53) and “A” (+73) asset classes all tied their post-Crisis lows.

13 of the 19 major investment grade sector credit spreads (68.4%) either set or tied post-Crisis.

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Tuesday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS

MON.
1/15

TUES.
1/16

AVERAGES
WEEK 1/08

AVERAGES
WEEK 1/01

AVERAGES
WEEK 12/25

AVERAGES
WEEK 12/18

AVERAGES
WEEK 12/11

AVERAGES
WEEK 12/04

New Issue Concessions

1.20 bps

2.35 bps

<0.725> bps

<0.79> bp

N/A

N/A

<1.46> bps

1.62 bps

Oversubscription Rates

2.29x

2.97x

3.75x

2.85x

N/A

N/A

4.64x

3.18x

Tenors

5.30 yrs

7.55 yrs

8.12 yrs

7.80 yrs

N/A

N/A

11.63 yrs

10.69 yrs

Tranche Sizes

$603mm

$1,131mm

$747mm

$787mm

N/A

N/A

$398mm

$576mm

Avg. Spd. Compression
IPTs to Launch

<15.80> bps

<13.41> bps

<19.12> bps

<17.01> bps

N/A

N/A

<18.18> bps

<16.34> bps

New Issues Priced

Today’s recap of visitors to our IG dollar Corporate and SSA DCM:

Please Note: for ratings I use the better two of Moody’s, S&P or Fitch.

IG

Issuer

Ratings

Coupon

Maturity

Size

IPTs

GUIDANCE

LAUNCH

PRICED

LEADS

Citigroup Inc

Baa1/A

3.142%

5NC4 F-t-F
1/24/2023

2,000

+87.5

N/A

+75

+75

CITI-sole

Citigroup Inc

Baa1/A

3.878%

21NC20 F-t-F
1/24/2039

1,000

+110a

N/A

+102

+102

CITI-s

Deutsche Bank AG/NY

Baa2/BBB-

FRN

1/22/2021

650

3mL+equiv

3mL+83.5a (+/-2)

3mL+81.5

3mL+81.5

DB-sole

Deutsche Bank AG/NY

Baa2/BBB-

3.15%

1/22/2021

1,500

+115

+102a (+/-2)

+100

+100

DB-sole

PhosAgro

Ba1/BBB-

3.949%

4/24/2023

500

4.375%a

4.125a (+/-12.5)

3.95%

+156.8

BAML/CITI/JPM/RAFF/REN/SG
SBER/UBS/UNI/VTB

PNC Bank NA

A2/A+

FRN

1/22/2021

400

3mL+equiv

3mL+equiv

3mL+25

3ml+25

CITI/GS/JPM

PNC Bank NA

A2/A+

2.50%

1/22/2021

900

+55a

+45a (+/-2)

+43

+43

CITI/GS/JPM/PNC

PNC Bank NA

A2/A+

3.25%

1/22/2028

700

+85a

+75a (+/-2)

+73

+73

CITI/GS/JPM/PNC

Toll Brothers Finance Corp.

Ba1/BBB-

4.35%

2/15/2028

400

4.50%-4.625%

4.40%a (+/-5)

4.35%

$100.00

CITI/DB/MIZ/STRH/WFS

TPG Specialty Lending Inc.

BBB-/BBB-

4.50%

1/22/2023

150

+225a

N/A

+212.5

+212.5

BAML/CITI/HSBC/JPM/STRH

Westpac Banking Corp.

Aa3/AA-

FRN

1/25/2021

500

3mL+equiv

3mL+equiv

3mL+34

3mL+34

BAML/GS/MS/WSTP

Westpac Banking Corp.

Aa3/AA-

2.65%

1/25/2021

1,000

+65a

+55a (+/-3)

+52

+52

BAML/GS/MS/WSTP

Westpac Banking Corp.

Aa3/AA-

3.40%

1/25/2028

1,000

+100a

+90a (+/-3)

+87

+87

BAML/GS/MS/WSTP

SSA

Issuer

Ratings

Coupon

Maturity

Size

IPTs

GUIDANCE

LAUNCH

PRICED

LEADS

Dexia Crédit Local

Aa3/AA

2.50%

1/25/2021

1,500

MS +low 30s
+32.5a

MS +29a

MS +27a

+45.90

BARC/CITI/GS/HSBC/SG

EDC

Aaa/AAA

2.50%

1/24/2023

1,250

MS +11a

MS +10a (/-1)

MS +10

+15.55

BAML/BMO/CACIB/JPM

Kommuninvest

Aaa/AAA

2.375%

4/22/2021

1,000

MS +6a

MS +5a

MS +4

+24.35

CITI/NOM/NORD/TD

Indexes and New Issue Volume

Countable IG volume includes maturities of 18-months and out and IG-rated Preferreds.

*Denotes new all-time high or tight.

Index

Open

Current

Change

IG29

48.007

47.998

<0.009>

VIX

11.66

11.91

0.25

CT10

2.538%

2.591%

0.053%

S&P

2,776

*2,802

26

DOW

25,792

*26,115

323

Nasdaq

7,223

*7,298

75

OIL

63.73

64.09

0.36

GOLD

1,326

1,327

1

USD

IG Corporates

USD

Total (IG + SSA)

DAY:

$10.70 bn

DAY:

$14.45 bn

WTD:

$23.15 bn

WTD:

$26.90 bn

MTD:

$82.825 bn

MTD:

$121.675 bn

YTD:

$82.825 bn

YTD:

$121.675 bn

2018 Lipper Report/Fund Flows – Week ending January 11th

For the week ended January 11th, Lipper U.S. Fund Flows reported an inflow of $4.186b into Corporate Investment Grade Funds (2018 YTD net inflow of $5.151b) and a net inflow of $2.651b from High Yield Funds (2018 YTD net inflow of $2.837b).

Over the same period, Lipper reported a net outflow of $12.514m from Loan Participation Funds (2018 YTD net outflow of $209.799m).